Wrap Text
Bengwenyama PGM Drilling Programme Intersects UG2 Reef
Southern Palladium Limited
Incorporated in the Commonwealth of Australia
Australian Company Number 646 391 899
ASX share code: SPD
JSE share code: SDL
ISIN AU0000220808
(“Southern Palladium” or “the Company”)
Bengwenyama PGM Drilling Programme Intersects UG2 Reef
Southern Palladium (ASX:SPD, ‘Southern Palladium’ or ‘the Company’) refers to its announcement
titled“Bengwenyama PGM Drilling Programme Intersects UG2 Reef” released to the market on 5 September
2022 (the Announcement).
The Announcement makes references to visual exploration results and accordingly the Company now releases
the Announcement with JORC Table 1 Sections 1 & 2 attached.
Authorised by the Managing Director
For further information, please contact:
Johan Odendaal
Managing Director
Southern Palladium
Phone: +27 82 557 6088
Email: johan.odendaal@southernpalladium.com
7 September 2022
JSE Sponsor
Merchantec Capital
Media & investor relations inquiries: Sam Jacobs, Six Degrees Investor Relations: +61 423 755 909
Follow @SouthernPalladium on Twitter
Follow Southern Palladium on LinkedIn
5 September 2022
Bengwenyama PGM Drilling Programme Intersects UG2 Reef
Key highlights:
• UG2 reef intersection confirmed as part of the Phase 1a drilling programme
• The UG2 intersection width of 87cm is in line with expectations
• Project geological stratigraphy will develop with the new drilling information
• Three drill rigs now in operation
Southern Palladium (ASX:SPD, ‘Southern Palladium’ or ‘the Company’) provides the following update on its
recently commenced Phase 1 drilling programme at the Bengwenyama PGM project located on the Eastern
Limb of the world class Bushveld Complex, South Africa
The Company confirms that drillhole E062 has intersected the first UG2 reef at 31.2m below surface as part of
the drilling programme. The mother-hole was completed on 1 September 2022 with an end-of-hole depth of
119.8m and matches stratigraphic models.
Marking, logging and scanning of the drillhole is in progress. A Down-hole acoustic televiewer survey will be
completed next and this will be followed by drilling two short non directional deflections on the UG2 reef.
Assaying of the reef will commence once all deflections, logging and core scanning is complete. Samples will
be sent to ALS Chemex South Africa (PTY) Ltd, located in Johannesburg, which is part of the ALS group. The
South African laboratory is ISO 17025 accredited by SANAS (South African National Accreditation System).
The massive UG2 chromitite reef intersection (NQ core size) in drillhole E062 has a downhole length (not true
width) of 87cm (figure 1), with a pegmatoidal pyroxenite as footwall underlain by a poikilitic pyroxenite. These
characteristics also assist in the identification of the UG2 reef. The intersected UG2 width is in line with
expectations, and consistent with the average reef width of 71 cm estimated in the JORC-2012 compliant
Inferred UG2 Mineral Resource. These reef widths lend themselves to the conventional mining methods
utilised in South Africa for narrow tabular orebodies.
Figure 1: UG2 Intersection (yellow box) in Drillhole E062
Figure 2 shows the UG1 reef, which was used as a marker to confirm the position of the UG2 reef. The UG1
layer appears to have three chromitite seams in the anorthosite host, from depths of approximately 90.30m
to 99.30m (yellow brackets):
Figure 2: UG1 Marker Reef
Three drill rigs have now been mobilised and are conducting drilling operations as indicated in figure 3 below.
Southern Palladium Limited: Bengwenyama PGM Drilling Programme
Figure 3 shows the location of the three drillholes currently being drilled (green stars).
Figure 3: Drilling Locations
Upgrades of the community centre for the driller’s laydown area, the geological office and the core yard are
continuing, and are making good progress. Figure 4A is a photograph showing a section of the core logging
area, and Figure 4B is a photo of the construction development for the drillers camp.
Figure 4A/B: Core Logging Area and Drillers Camp
Plans are progressing for the pending mobilisation of the two additional drill rigs on-site as part of phase 1a.
Commenting on the UG2 intersection, Managing Director Johan Odendaal, said:
“Confirmation of the UG2 Reef intersection is an important early barometer for the Company as it advances
the Phase 1a drill programme. The initial results provide further evidence that the position of the UG2 Reef is
in line with the geological model developed from historical information, and which forms the basis of the JORC-
2012 compliant Inferred UG2 Mineral Resource. Pleasingly, the broader project infrastructure is also
progressing well as the Company continues to execute on its near-term operational targets. The management
team looks forward to providing additional updates once assaying gets underway, following the completion of
the down-hole acoustic televiewer survey.”
This announcement has been approved for release by the Board of Southern Palladium Limited.
About Southern Palladium:
Southern Palladium Limited (ASX:SPD, JSE:SDL) is a dual-listed platinum group metal (PGM) company
developing the advanced Bengwenyama PGM project, particularly rich in palladium/rhodium, in South
Africa. The project is located on the Eastern Limb of the Bushveld Complex, which contains more than 70%
of the world’s known Platinum Group Metal (PGM) Resources.
With its 70% stake in the project, the Company’s focus will be on the delivery of a Pre-Feasibility study and
Mining Right application. A geophysical survey has been completed and a two-phase diamond drill
programme commenced in August 2022.
A major development opportunity in the global PGM market, previous exploration at Bengwenyama has
already delivered a JORC 2012-compliant Inferred Mineral Resource of 18.8Moz within two ore horizons –
the UG2 chromitite Reef and the Merensky Reef.
In addition to the Inferred Resource, an assessment by mining industry consultants CSA Global assessed
the total Exploration Target potential of Bengwenyama at between 134–201Mt at a grade of 3.5–5.2 g/t (3
PGE + Au). The Company is led by an experienced on-ground management team including some of South
Africa’s most high-profile mining industry executives.
JORC Statement
The information in this report that relates to Mineral Resources at the Bengwenyama Project is based on
details originally reported in the Independent Technical Assessment Report (ITAR) No. R246.2021 prepared
by CSA Global dated 19 April 2022 contained in the Company’s Prospectus and Pre-Listing Statement dated
22 April 2022. The information in the ITAR that relates to Technical Assessment of the Mineral Assets,
Exploration Targets, or Exploration Results is based on information compiled and conclusions derived by Dr
Brendan Clarke, a Partner and an employee of CSA Global. The information in the ITAR that relates to
Mineral Resources is based on work undertaken by Anton Geldenhuys, a Principal Consultant and employee
of CSA Global. The Prospectus containing the ITAR can be found on the Company’s website at:
https://www.southernpalladium.com/site/investor-centre/prospectus
The Company confirms that it is not aware of any new information or data that materially affects the
information included in the ITAR. The Company also confirms that all material assumptions and technical
parameters underpinning the estimates in the ITAR continue to apply and have not materially changed. In
addition, the Company confirms that the form and context in which the Competent Person’s findings are
presented have not been materially modified.
Competent Person Statement
The scientific and technical information contained in this announcement has been reviewed, prepared, and
approved by Mr Uwe Engelmann (BSc (Zoo. & Bot.), BSc Hons (Geol.), Pr.Sci.Nat. No. 400058/08, MGSSA).
Mr Engelmann is a director of Minxcon (Pty) Ltd and a member of the South African Council for Natural
Scientific Professions and has sufficient experience relevant to the styles of mineralisation and activities
being undertaken to qualify as a Competent Person, as defined in the 2012 Edition of the ‘Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Engelmann has a beneficial
interest in Southern Palladium through a shareholding in Nicolas Daniel Resources Proprietary Limited.
For further information, please contact:
Johan Odendaal
Managing Director
Southern Palladium
Phone: +27 82 557 6088
Email: johan.odendaal@southernpalladium.com
Media & investor relations inquiries: Sam Jacobs, Six Degrees Investor Relations: +61 423 755 909
Follow @SouthernPalladium on Twitter
Follow Southern Palladium on LinkedIn
JORC Checklist – Table 1 Assessment and Reporting Criteria
SECTION 1: SAMPLING TECHNIQUES AND DATA
Criteria Explanation Detail
Nature and quality of sampling (e.g. cut channels,
random chips, or specific specialised industry
standard measurement tools appropriate to the
minerals under investigation, such as down hole No sampling has been completed on
gamma sondes, or handheld XRF instruments, etc.). drillhole E062 to date
These examples should not be taken as limiting the
broad meaning of sampling.
Include reference to measures taken to
ensure sample representivity and the No sampling has been completed on
appropriate calibration of any drillhole E062 to date
measurement tools or systems used.
Sampling
techniques Aspects of the determination of mineralisation that
are Material to the Public Report. In cases where
‘industry standard’ work has been done this would
be relatively simple (e.g. ‘reverse circulation drilling
was used to obtain 1 m samples from which 3 kg
was pulverised to produce a 30 g charge for fire No sampling has been completed on
assay’). In other cases more explanation may be drillhole E062 to date
required, such as where there is coarse gold that
has inherent sampling problems. Unusual
commodities or mineralisation types (e.g.
submarine nodules) may warrant disclosure of
detailed information.
Drill type (e.g. core, reverse circulation, open-hole
hammer, rotary air blast, auger, Bangka, sonic,
etc.) and details (e.g. core diameter, triple or The drillhole was drilled with a Delta 520
Drilling standard tube, depth of diamond tails, face- drill rig starting with HQ core size for the
techniques sampling bit or other type, whether core is first 10m and then changing to NQ size
oriented and if so, by what method, etc.).
Method of recording and assessing core and chip No sampling has been completed on
sample recoveries and results assessed. drillhole E062 to date
Measures taken to maximise sample recovery and No sampling has been completed on
Drill sample ensure representative nature of the samples. drillhole E062 to date
recovery
Whether a relationship exists between sample
recovery and grade and whether sample bias may No sampling has been completed on
have occurred due to preferential loss/gain of drillhole E062 to date
fine/coarse material.
Whether core and chip samples have been
geologically and geotechnically logged to a level of No detailed logging has been completed at
detail to support appropriate Mineral Resource this stage. Only high-level stratigraphic
estimation, mining studies and metallurgical logging for reef identification has been
studies. completed to date
Whether logging is qualitative or quantitative in No detailed logging has been completed at
nature. Core (or costean, channel, etc.) this stage. Only high-level stratigraphic
photography. logging for reef identification has been
completed to date
Logging
The total length and percentage of the relevant No detailed logging has been completed at
intersections logged. this stage. Only high-level stratigraphic
logging for reef identification has been
completed to date. Initial intersection
measurements have logged the UG2 reef as
87 cm in length
Sub- If core, whether cut or sawn and whether quarter, No sampling has been completed on
sampling half or all core taken. drillhole E062 to date
techniques If non-core, whether riffled, tube sampled, rotary No sampling has been completed on
and sample split, etc. and whether sampled wet or dry. drillhole E062 to date
preparation
For all sample types, the nature, quality and No sampling has been completed on
appropriateness of the sample preparation drillhole E062 to date
technique.
Quality control procedures adopted for all sub-
sampling stages to maximise representivity of No sampling has been completed on
samples. drillhole E062 to date
Measures taken to ensure that the sampling is
representative of the in situ material collected, No sampling has been completed on
including for instance results for field drillhole E062 to date
duplicate/second-half sampling.
Whether sample sizes are appropriate to the grain No sampling has been completed on
size of the material being sampled. drillhole E062 to date
The nature, quality and appropriateness of the
assaying and laboratory procedures used and No sampling has been completed on
whether the technique is considered partial or drillhole E062 to date
total.
For geophysical tools, spectrometers, handheld
Quality of XRF instruments, etc., the parameters used in
assay data determining the analysis including instrument
and make and model, reading times, calibrations No sampling has been completed on
laboratory factors applied and their derivation, etc. drillhole E062 to date
tests
Nature of quality control procedures adopted (e.g.
standards, blanks, duplicates, external laboratory
checks) and whether acceptable levels of accuracy No sampling has been completed on
(i.e. lack of bias) and precision have been drillhole E062 to date
established.
The verification of significant intersections by
either independent or alternative company No sampling has been completed on
personnel. drillhole E062 to date
Verification No sampling has been completed on
of sampling Discuss any adjustment to assay data. drillhole E062 to date
and assaying
Documentation of primary data, data entry
procedures, data verification, data storage No sampling has been completed on
(physical and electronic) protocols. drillhole E062 to date
The use of twinned holes. No twinning has been undertaken
Accuracy and quality of surveys used to locate
drillholes (collar and down-hole surveys), Drillhole collar positions are handheld
trenches, mine workings and other locations used Garmin GPS positions. The drillholes will
in Mineral Resource estimation. still be surveyed in at a later stage
Specification of the grid system used. The coordinate system used is LO31
Location of
data points Regional three-dimensional (3D)
topography was constructed from regional
surface contours and Shuttle Radar
Quality and adequacy of topographic control. Topography Mission (SRTM) data. The
surface was trimmed 300–500 m beyond
the Project perimeter
Only E062 position is relevant for this
Data spacing for reporting of Exploration Results. release
Data spacing Whether the data spacing and distribution is Geological continuity is based on the
and sufficient to establish the degree of geological and knowledge of the surrounding area and 3D
distribution grade continuity appropriate for the Mineral model constructed from historical data.
Resource and Ore Reserve estimation This intersection confirms the position of
procedure(s) and classifications applied. the UG2 reef
No sampling has been completed on
Whether sample compositing has been applied. drillhole E062 to date
Whether the orientation of sampling achieves
unbiased sampling of possible structures and the No sampling has been completed on
Orientation extent to which this is known, considering the drillhole E062 to date
of data in deposit type.
relation to
geological If the relationship between the drilling orientation
structure and the orientation of key mineralised structures No sampling has been completed on
is considered to have introduced a sampling bias, drillhole E062 to date
this should be assessed and reported if material.
Sample The measures taken to ensure sample security. No sampling has been completed on
security drillhole E062 to date
Audits or The results of any audits or reviews of sampling No audits have been undertaken on the
reviews techniques and data. drilling to date
SECTION 2: REPORTING OF EXPLORATION RESULTS
Criteria Explanation Detail
Type, reference name/number, location and A Preferent Prospecting Right was granted
ownership including agreements or material to the Bengwenyama Tribe’s investment
issues with third parties such as joint ventures, vehicle, Miracle upon Miracle
Mineral partnerships, overriding royalties, native title Investments (Pty) Ltd in 2015. This was
tenement and interests, historical sites, wilderness or national renewed in early 2021 and is valid until
land tenure park and environmental settings. February 2024. The Right covers all
status elements of potential economic interest
The security of the tenure held at the time of
reporting along with any known impediments to The right is valed until February 2024
obtaining a licence to operate in the area.
Exploration Drilling was undertaken by Rustenburg
done by other Platinum Mines from 1966 to 1985. Trojan
parties exploration completed drilling on Eerste
Geluk between 1990 and 1993. Drilling
prior to 1994 was not used as part of this
Acknowledgment and appraisal of exploration by Mineral Resource estimate (MRE) due to
other parties. the incomplete nature or availability of
the drillhole data. Nkwe completed
drillholes in 2007–2008. This drilling
supports the MRE. Reconnaissance
mapping has been completed by previous
operators.
The target UG2 and Merensky reefs occur
Deposit type, geological setting and style of within the Upper Critical Zone of the
Geology mineralisation. Rustenburg Layered Suite of the Bushveld
Complex. These reefs are laterally
continuous for tens to hundreds of
kilometres. The UG2 comprises
mineralised chromitite, whereas the
Merensky Reef is defined as the
mineralised pyroxenitic zone between
upper and lower chromitite stringers. The
Bushveld Complex is the world’s largest
igneous intrusion and also the largest
global repository of PGEs and chromitite.
Both reefs are stratiform with relatively
minor disruptive structural features and
replacement deposits.
A summary of all information material to the X: 86189
understanding of the exploration results including Y: 2740009
a tabulation of the following information for all Z: 777
Material drillholes:
* easting and northing of the drillhole collar Vertical drillhole
* elevation or RL (Reduced Level – elevation above
sea level in metres) of the drillhole collar EOH: 119.8m
Drillhole * dip and azimuth of the hole
Information * down hole length and interception depth Intersection: 31.20m – 32.07m
* hole length.
If the exclusion of this information is justified on
the basis that the information is not Material and
this exclusion does not detract from the NA
understanding of the report, the Competent
Person should clearly explain why this is the case.
In reporting Exploration Results, weighting
averaging techniques, maximum and/or minimum
grade truncations (e.g. cutting of high grades) and No sampling has been completed on
cut-off grades are usually Material and should be drillhole E062 to date
stated.
Data Where aggregate intercepts incorporate short
aggregation lengths of high grade results and longer lengths of
methods low grade results, the procedure used for such No sampling has been completed on
aggregation should be stated and some typical drillhole E062 to date
examples of such aggregations should be shown in
detail.
The assumptions used for any reporting of metal No sampling has been completed on
equivalent values should be clearly stated. drillhole E062 to date
If the geometry of the mineralisation with respect
Relationship to the drillhole angle is known, its nature should
between be reported. The intersection length stated is the
mineralisation If it is not known and only the down hole lengths downhole length. The drillhole was drilled
widths and are reported, there should be a clear statement to at 90 degrees and the reef dip is expected
intercept this effect (e.g. ‘down hole length, true width not to be approximately 12 degrees.
lengths known’). Therefore, the difference should be
minimal.
Appropriate maps and sections (with scales) and
tabulations of intercepts should be included for A map of the drillhole positions is included
any significant discovery being reported These in the press release. A section has not ben
Diagrams
should include, but not be limited to a plan view of included as the stratigraphy is still a work
drillhole collar locations and appropriate sectional in progress
views.
Balanced Where comprehensive reporting of all Exploration Reef intersection depth for drillhole E062
reporting Results is not practicable, representative reporting has been reported. It has been related to
of both low and high grades and/or widths should the position of the UG3 reef above the
be practiced to avoid misleading reporting of UG2 and to the UG1 reef below it, to
Exploration Results. confirm the UG2 reef
Other exploration data, if meaningful and
material, should be reported including (but not
limited to): geological observations; geophysical
Other survey results; geochemical survey results; bulk NA
substantive samples – size and method of treatment;
exploration metallurgical test results; bulk density,
data groundwater, geotechnical and rock
characteristics; potential deleterious or
contaminating substances.
The nature and scale of planned further work (e.g. This is the start of the drilling programme
tests for lateral extensions or depth extensions or and the extent of the drilling programme
large-scale step-out drilling). is shown in the figure in the press release.
The total planned drilling meters for phase
Further work 1 is approximately 25 000m
Diagrams clearly highlighting the areas of possible
extensions, including the main geological Diagram included in the press release
interpretations and future drilling areas, provided
this information is not commercially sensitive.
Date: 07-09-2022 09:07:00
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